Euronext Logo. Photo: Wikipedia
Euronext Logo. Photo: Wikipedia

What is a Stock Exchange?

Stock Exchange also known as the share market is an organization that allows a person or company to buy and sell securities. Securities can be shares of stock, bonds issued by a company or sovereign, and different financial instruments in a public venue.

Stock Exchanges give membership to designated stockbrokers and members who act as intermediaries for buying and selling securities. Stock exchange ensures compliance of fair trade policies and compliance related to transaction activities themselves. Stock exchanges have different indices which act as a barometer of the health of the economy.

These days almost all stock exchanges exist as electronic marketplaces. The market price of the underlying shares of the company and different commodities like oil, gold, copper, etc. depends on the demand and supply situation in the market as buyers and sellers place their respective orders for execution.

Overview of Euronext

Formed through an initial merger of Amsterdam Stock Exchange, Brussels Stock Exchange, and Paris Bourse on September 22, 2000, Euronext has been a frontrunner of European economics. Now holding seats in Amsterdam, Brussels, London, Lisbon, Dublin, and Paris, this stock exchange used the benefits of the EU to build a cross-continental dynasty in the finance world. The following paragraphs will provide you with an insight into the past and present of Euronext to help you decide if it is in your future.

Euronext was able to unite Paris, Amsterdam, and Brussels exchanges in 2000 and claim 4 centuries of history and experience. This merger formed Euronext Amsterdam, Euronext Brussels, and Euronext Paris. This self-titled pan-European securities exchange continued its growth and expansion a year later in December 2001, acquiring the shares of the London International Financial Futures and Options Exchange EURONEXT (LIFFE) forming Euronext.LIFFE. Just the following year in 2002 the group merged with the Portuguese stock exchange Bolsa de Valores de Lisboa e Porto (BVLP) renamed Euronext Lisbon. Euronext announced the creation of Euronext London to spread its reach across the U.K.

After a rumor of a possible purchase by NASDAQ in 2006, Euronext entered a merger with the NYSE Group on April 4th, 2007. This move led to the forming of the NYSE Euro.

By November 2013 International Exchange (ICE) carried through with its promise to acquire NYSE Euronext, with clear intention to separate NYSE from Euronext and pursue an initial public offering in 2014. With this move, Euronext was separated from ICE. To keep Euronext running problem-free a syndicate of eleven investors, made moves to invest in the company. These “reference shareholders” own 33.36% of Euronext capital and control of 3 board seats.

Photo: euronext
Photo: euronext

While still functioning as NYSE Euronext, in 2010 Euronext introduced its Universal Trading Platform, an electronic trading service. This opened up the option of trading across markets and products. Euronext exchange offers trading for stocks of companies listed across all its markets, along with bonds, EFTs, foreign exchange derivatives, commodities, indices, equity derivatives, structured notes, warrants, and certificates.

Euronext manages 4 national European equity indices: AEX-index (Dutch Stocks Benchmark), BEL 20 (Belgian Stocks Benchmark), CAC 40 (French Stocks Benchmark), and PSI 20 (Portuguese Stocks Benchmark).

With a Market Capitalization of $4.388 Trillion (Oct 2017), Euronext is the 5th largest stock exchange in the world. With a Monthly Trade Value of $167 Billion, it does not have as much activity as its closest competitors in Shanghai and London who come in respectively 4th and 6th in terms of Market Cap.

Euronext has been active for less than 2 decades but has managed to accomplish a lot in this short period of time. It is a worthy representative of the strengths of the European markets. The transparent exchange model makes this a respectable market that gives investors trust when investing their hard-earned money. Since this is a culmination of multiple exchanges, make sure you do your research and find out which one of their choices offers you the best platform for investing.

Read More: Can Foreigners Buy or Invest in Paris Stock Exchange Market?

Timeline of Euronext's Milestones

2000: Euronext NV was formed by merging the stock exchanges of Paris, Brussels, and Amsterdam.

2002: Euronext buys LIFFE and the Portuguese stock exchange.

2005: Alternext created.

2007: Euronext merges with New York Stock Exchange to create NYSE Euronext.

2010: Euronext London created.

2013: Intercontinental Exchange (ICE) buys NYSE Euronext.

2014: Euronext re-emerges from ICE via an initial public offering (IPO). (ICE retained ownership of the New York Stock Exchange and LIFFE.)

List of Trading Holidays of EURONEXT Market in 2022

DAY DATE HOLIDAY COMMENTS
Saturday Jan 01, 2022 New Year's Day Full-Day Off
Friday Apr 15, 2022 Good Friday Full-Day Off
Monday Apr 18, 2022 Easter Monday Full-Day Off
Sunday May 01, 2022 Labor day Full-Day Off
Sunday Dec 25, 2022 Christmas Day Full-Day Off

Calendar of Bussiness Days 2022

The Euronext Cash Markets, Euronext Block, and the Euronext Derivatives Markets will be open Monday to Friday throughout 2022 except on the following days

AMSTERDAM = BRUSSELS = DUBLIN = LISBON == OSLO === PARIS

Monday 3 January 2022 (Substitute for New Year’s Day)

Full Day Trading

Full Day Trading

Closed

Full Day Trading

Full Day Trading

Full Day Trading

Wednesday 13 April 2022 (Wednesday before Easter)

Full Day Trading

Full Day Trading

Full Day Trading

Full Day Trading

Half Day Trading*

Full Day Trading

Thursday 14 April 2022 (Maundy Thursday)

Full Day Trading

Full Day Trading

Full Day Trading

Full Day Trading

Closed

Full Day Trading

Friday 15 April 2022

(Good Friday)

Closed

Closed

Closed

Closed

Closed

Closed

Monday 18 April 2022 (Easter Monday)

Closed

Closed

Closed

Closed

Closed

Closed

Monday 2 May 2022

(Irish/UK Bank Holiday)

Full Day Trading

Full Day Trading

Closed

Full Day Trading

Full Day Trading

Full Day Trading

Tuesday 17 May 2022 (Constitution Day)

Full Day Trading

Full Day Trading

Full Day Trading

Full Day Trading

Closed

Full Day Trading

Thursday 26 May 2022 (Ascension Day)

Full Day Trading

Full Day Trading

Full Day Trading

Full Day Trading

Closed

Full Day Trading

Monday 6 June 2022

(Whit Monday)

Full Day Trading

Full Day Trading

Full Day Trading

Full Day Trading

Closed

Full Day Trading

Friday 23 December 2022 (Substitute for Christmas Eve)

Full Day Trading

Full Day Trading

Half Day Trading*

Full Day Trading

Full Day Trading

Full Day Trading

Monday 26 December 2022 (Stephen’s Day/Boxing Day)

Closed

Closed

Closed

Closed

Closed

Closed

Tuesday 27 December 2022

(Substitute for Christmas Day)

Full Day Trading

Full Day Trading

Closed

Full Day Trading

Full Day Trading

Full Day Trading

Friday 30 December 2022 (Substitute for New Year’s Eve)

Full Day Trading

Full Day Trading

Half Day Trading*

Full Day Trading

Full Day Trading

Full Day Trading

*Half Trading Day Closing hours for half-day trading depend on the market.

- On Wednesday 13 April 2022, trading will be half day trading for Oslo Børs. The exact trading hours are provided here.

- For Dublin, Equity instruments will close between 13:28 – 13:30 CET (12:28 – 12:30 Dublin time). ETFs will close at 14:00 CET (13:00 Dublin time).

Trading hours of Euronext stock market

Photo: euronext
Photo: euronext

The Euronext exchange is the largest in Europe and has locations in Paris, Amsterdam and Lisbon, as well as others. Opening and closing times for the Euronext exchanges are identical – 8am to 4.30pm (GMT) Monday to Friday. However, because the hours are fixed across multiple locations they do vary in terms of local hours. For instance, Paris is open from 9am to 5.30pm local time, but Lisbon operates from 8am to 4.30pm local time to ensure that their hours align.* Neither of these exchanges stop for a lunch break.

Another European stock exchange is the London Stock Exchange (LSE), which is one of the largest and most prestigious exchanges in the world. As can be seen from the table above, the London Stock Exchange opens at 8am and closes at 4.30pm (UK time), with no lunch break.*

Why Invest in the Euronext

The Euronext is one the largest stock exchanges in not only Europe but in the world. This makes it a place where people want to invest their money. This is the climate that has led to merger and acquisition interest on the part of other stock exchanges in the past, since stock exchanges tend to realize large economies of scale and entering new markets is hard from a regulatory standpoint.

Euronext has a market capitalization of about €9.6 billion. As of June 2021, it made €1,364 million in revenue. It also has 70.4% cash equity market share, a reported 58.8% EBITDA margin, and has offices in over 20 countries. Euronext earned an S&P rating of BBB, showing a stable outlook.8 You can learn more about investing in Euronext by visiting its investor's page.

Along with investing in the stock exchange, you may want to think about putting your money into one of the many indexes that are part of the exchange. These indexes provide unique exposure to several national equity markets, including those in Amsterdam, France, Portugal, and London. People looking to get into these markets may want to look at exchange-traded funds (ETFs) backed by these major indexes—or many of its other indexes.

You should also be aware of the risks that come along with investing in the Euronext and its indices. The stock exchange is reliant on the health of the Eurozone and European Union economies. A downturn in these areas could have an adverse impact on trading action and earnings for Euronext. A downturn could also impact the value of companies listed on the exchange and the indices that are made up of these equities.

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